There is a growing sense of urgency among lawmakers and the White House to address the looming debt ceiling deadline, with the US in danger of defaulting on its bills unless Congress raises or suspends the current $31tn cap as soon as this summer. However, controversy has erupted over what should be done given that Republicans want significant spending cuts in exchange for their support, while Democrats are calling for a "clean" bill that only raises the debt limit.

House Speaker Kevin McCarthy has written to President Biden laying blame on him for the impasse and demanding that spending cuts are made "to lower energy costs" and increase border security. However, Democrats argue that the Republicans must first produce a budget proposal to allow for meaningful discussion. Both sides remain dug in, with an unprecedented financial crisis set to be triggered if Congress fails to act.

Many, including analysts and investors, are calling for a resolution and swift action, warning of dire consequences for the economy and global markets if the US does not meet its obligations. At present, lawmakers are about to take a scheduled two-week recess, with time for negotiation rapidly running out.